Call Options on VIPS on 8/22/2016

Vipshop Holdings Limited (VIPS) operates as an online discount retailer for various brands in the People's Republic of China.

It offers a range of branded products, including women's apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men shoes for casual and formal occasions; and accessories consisting of belts, fashionable jewelry, watches, and glasses for women and men.

The company also provides handbags, such as purses, satchels, duffel bags, and wallets; apparel, gear and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers of all age groups; sports apparel, and sports gear, and footwear for tennis, badminton, soccer, and swimming; and skin care and cosmetic products, including cleansers, lotions, face and body creams, face masks, sunscreen, foundations, lipsticks, eye shadows, and nail polish.

In addition, it offers home furnishing products comprising bedding and bath products, home decors, and dining and tabletop items; small household appliances; designer apparel, footwear and accessories; and snacks, health supplements, and occasion-based gifts, such as chocolates, moon-cakes, and tea. Further, the company provides consumer financing, supply chain financing, and wealth management services.

The company provides its branded products through its vipshop.com, vip.com, and lefeng.com Websites, as well as through its cellular phone application. 

Shares have formed a bullish "cup and handle" following the Company's latest quarterly results.  Revenue rose 49% in the June quarter from a year ago, 6% above consensus forecasts. Non-GAAP earnings per share rose 30% from a year ago to 1.12 yuan, 13% above street forecasts.

We will be trading September 16th Call Options

52-Weeks Trading Range: $10.21 - $22.31

Last Trade: $16.00

Trade Buy 1 September $15.00 Call at $1.35 For a net debit of $1.35 Profit/Loss Analysis Breakeven at $16.35 Maximum profit is unbounded Maximum loss is ($135.00) at strike of $15.00 Closing Summary Sold 1 September $15.00 Call at $0.00

Position closed on 9/19/2016 at price of $0.00 with a -100.00% loss in 27 days.

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